Which Statement Best Describes the Evolution of Inflation in Canada

question 155

Multiple Choice

Which statement best describes the evolution of inflation in Canada?

• A) It was a constant 6 percent through the 2000s.
• B) The inflation rate was, on average, 0 percent during the 1980s.
• C) During the 1990s, prices rose at an average rate of 2 percent per year.
• D) During the 1970s, there was deflation.

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Definitions:

Effective Annual Rate

The interest rate on an investment or loan that accounts for the effect of compounding over a given period.

Dividend

A dividend is a portion of a company's earnings that is paid to shareholders, usually on a regular basis.

Stock Price

The current price at which a share of a company's stock can be bought or sold in a financial market.

Dividend Yield

A ratio in finance that reveals the comparison between a company's yearly dividend distribution and its share price.